In preparation for the upcoming Ramadan, there has been a noticeable rise in goods imports. At the same time, the settlement of outstanding LC bills has accelerated, alongside a significant uptick in foreign travel. This surge in activity has led to a sharp increase in dollar demand, far exceeding the available supply, creating pressure on the foreign exchange market and impacting both banking and open market transactions.
Banks are buying remittances at least 8 Taka more than the stated rate of 120 Taka because of this heightened demand. There have also been observable adverse effects in the open market as a result of this general situation in the dollar market.
Such data was collected from a number of banks and money changers in the capital’s Motijheel and Dilkusha neighbourhoods on Sunday, December 22.
Bankers acknowledge that the pressure to meet import obligations has suddenly intensified, leading to a rise in dollar prices. Economists fear this situation may further escalate inflation.
It has been reported that banks, facing a dollar shortage, have purchased remittances at a maximum rate of 128 Taka, while the central bank’s declared rate is 120 Taka. Meanwhile, in the curb market or open market, the price of the US dollar has climbed to 129 Taka, compared to 123-124 Taka a week ago. The sudden spike in dollar demand has allowed some unscrupulous groups to exploit the situation, causing instability in the dollar market. In response, Bangladesh Bank has sought information on dollar transactions from at least 13 suspected banks.
According to the appropriate authorities, efforts to stabilise the foreign currency market have also increased. The highest dollar rate allowed for banks has increased from 118 Taka in June and 110 Taka in December 2023 to 120 Taka as of right now, according to data from the central bank. This shows that during the course of a year, the stated rate increased by 10 Taka. Nonetheless, the gain amounts to 18 Taka in comparison to the real market circumstances.
Source: Ittefaq
